Interpublic Stock Analysis, Valuation (NYSE:IPG)

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$21.28 $0.43 (2.06%) IPG stock closing price Sep 22, 2017 (Closing)
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Interpublic
Updated on : Sep 22, 2017
previous close
IPG 21.3 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
11.9%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.82B
Debt/Equity Ratio:
 0.91
Compared to the industry
Cash Flow
Operating cash flow:
$218.7M
Net Income:
$94.7M
Dividend Yield
IPG dividend yield:
3.1%
PROS      CONS
Operating Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
IPG PS :
1.1
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.8%
Return on Equity:
27.9%
Free Cash Flow Margin:
9.3%
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Interpublic Stock Analysis

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View Interpublic stock analysis video. This is our analyst opinion covering the buy and sell arguments for IPG stock.

Interpublic Group of Companies Inc Stock Rating 3.5/5

Our Interpublic stock opinion is based on fundamentals of the company. This Interpublic stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy IPG stock?

  • The TTM operating margin was good at 11.9% for Interpublic.
  • The company has an operating cash flow which is 2.3 times the net income. We see this as a positive signal.
  • The Interpublic stock currently trades at a price to earnings ratio of 15.4. We rate this as a positive, compared to the industry average of 23.1.
  • IPG stock is trading at a favorable price to sales multiple of 1.1 as against the Advertising Marketing Services industry average multiple of 1.7.
  • Interpublic's return on invested capital of 14.8% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Interpublic at 27.9%.

Should you sell IPG stock?

  • With a debt/equity ratio of  0.91, Interpublic is highly leveraged in comparison to Business Services peers.

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